,,ii  #aaith ,,congress  #ast ,session  
,s4 #icj  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #aa          
7legislative day1 ,march #aj71 #bjbe,mr4
 ,mc,connell introduced the following   
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to exclude from gross income  
capital gains from the sale of certain  
farmland property which are reinvested  
in individual retirement plans4  #a4    
,exclusion of certain capital gains from
 the sale of certain farmland property  
7a7 ,in general ,part ,,iii of          
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#aci;,i the following new section3      
#aci;,j4 ,gain from the sale or exchange
 of qualified farmland property to      
qualified farmers  7a7 ,in general ,if a
 taxpayer makes an election under this  
section and files the agreement referred
 to in subsection 7d77#b71 gross income 

shall not include so much of the gain   
from the sale or exchange of qualified  
farmland property to a qualified farmer 
as does not exceed the aggregate amount 
contributed by the taxpayer to an       
individual retirement plan during the   
#fj-;day period beginning on the date of
 such sale or exchange4  7b7 ,qualified 
farmland property2 qualified farmer ,for
 purposes of this section-- 7#a7        
,qualified farmland property ,the term  
qualified farmland property means real  
property located in the ,united ,states 
which-- 7,a7 has been used by the       
taxpayer as a farm for farming purposes1
 or  7,b7 leased by the taxpayer to a   
farmer for farming purposes1  during    
substantially all of the #aj-year period
 ending on the date of the qualified    
sale or exchange4  7#b7 ,qualified      
farmer ,the term qualified farmer means 
any individual who-- 7,a7 is actively   
engaged in farming 7within the meaning  
of subsections 7b7 and 7c7 of section   
#ajja of the ,food ,security ,act of    

#aihf 7#g ,u4,s4,c4 #acjh-a7;b7 and     
7c7771 and  7,b7 is designated in an    
agreement under subsection 7d77#b74  7c7
 ,tax treatment of further dispositions 
or non-,farm use  7#a7 ,in general ,if1 
within #aj years after the date of the  
sale or exchange-- 7,a7 the qualified   
farmer disposes of any interest in      
qualified farmland property1 or  7,b7   
the qualified farmer ceases to use the  
qualified farmland property as a farm   
for farming purposes1  then1 in addition
 to any other tax1 there is hereby      
imposed for the taxable year of such    
disposition or cease in use1 a tax in   
the amount determined under paragraph   
7#b74  7#b7 ,amount of tax ,the amount  
of tax determined under this paragraph  
is an amount equal to the sum of-- 7,a7 
the product of-- 7i7 the amount excluded
 from the gross income under subsection 
7a71 and  7ii7 the sum of-- 7,i7 the    
highest rate of tax on adjusted net     
capital gain under section #a7;h71 plus 
7,,ii7 the rate of tax applicable under 

section #adaa1 plus  7,b7 interest at   
the underpayment rate established under 
section #ffba on the amount determined  
under subparagraph 7,a7 for each prior  
taxable year for the period beginning   
with the taxable year in which the sale 
or exchange occurred4  7#c7 ,liability  
for tax ,the qualified farmer shall be  
personally liable for the additional tax
 imposed by this subsection4  7#d7      
,partial dispositions ,for purposes of  
this subsection1 where the qualified    
farmer disposes of a portion of the     
qualified farmland acquired by such     
qualified farmer or there is a cessation
 of use of such a portion as a farm for 
farming purposes1 the amount determined 
under paragraph 7#b77;,a77i7 shall be   
the amount which bears the same ratio   
the amount otherwise determined under   
such paragraph as-- 7,a7 the portion of 
the qualified farmland so disposed or   
ceased to be used1 bears to  7,b7 the   
entire amount of the qualified farmland 
so acquired4  7d7 ,election  7#a7 ,in   

general ,an election under subsection   
7a7 shall be made at such time and in   
such form and manner as the ,secretary  
shall prescribe4 ,such an election1 once
 made1 shall be irrevocable4  7#b7      
,agreement ,the agreement referred to in
 this paragraph is a written agreement  
signed by the qualified farmer          
designated in such agreement consenting 
to the application of subsection 7c7    
with respect to the qualified farmland  
property4 ,such agreement shall include 
a statement indicating the amount       
described in subsection 7c77#b77;,a77i74
  7e7 ,definitions and special rules    
,for purposes of this section-- 7#a7    
,farm2 farming purposes ,for purposes of
 this section1 the terms farm and       
farming purposes have the respective    
meanings given such terms under section 
#bjcb;,a7e74  7#b7 ,statute of          
limitations ,if qualified farmland      
property is disposed of or ceases to be 
used as a farm for farming purposes1    
then-- 7,a7 the statutory period for the

 assessment of any tax under subsection 
7c7 attributable to such disposition or 
cessation shall not expire before the   
expiration of #c years from the date the
 ,secretary is notified 7in such manner 
as the ,secretary may by regulations    
prescribe7 of such disposition or       
cessation1 and  7,b7 such tax may be    
assessed before the expiration of such  
#c-year period notwithstanding the      
provisions of any other law or rule of  
law which would otherwise prevent such  
assessment4  7#c7 ,involuntary          
conversions and like-kind exchanges     
7,a7 ,involuntary conversions ,under    
regulations provided by the ,secretary1 
no tax shall be imposed under subsection
 7c7 if there is an involuntary         
conversion 7within the meaning of       
section #bjcb;,a7h77#c7 of an interest  
in qualified farmland property4  7,b7   
,like-kind exchanges ,rules similar to  
the rules of section #bjcb;,a7i7 shall  
apply where qualified farmland property 
is disposed of in a transaction which   

qualifies under section #ajca4  7#d7 ,no
 double benefit ,no deduction shall be  
allowed under section #bai with respect 
so much of the qualified retirement     
contributions for the taxable year as   
does not exceed the amount excluded from
 income under subsection 7a74  4  7b7   
,waiver of contribution limitation      
,section #djh of the ,internal ,revenue 
,code of #aihf is amended by            
redesignating subsection 7r7 as         
subsection 7s7 and by inserting after   
subsection 7q7 the following new        
subsection3  7r7 ,increased limitation  
for contributions of qualified farmland 
gain  7#a7 ,in general ,for purposes of 
applying subsections 7a77#a7 and        
7b77#b77;,b71 the amount in effect under
 section #bai7;b77#a77;,a7 for any      
taxable year shall be increased by the  
lesser of-- 7,a7 the aggregate amount of
 gain by the taxpayer from the sale or  
exchange of qualified farmland property 
to a qualified farmer during the period 
beginning #fj days before the first day 

of such taxable year and ending with the
 last day of such taxable year1 or  7,b7
 the amount contributed during the      
#fj-;day period ending with such sale or
 exchange to individual retirement plans
 of the taxpayer4  7#b7 ,definitions    
,any term used in this section which is 
used in section #aci;,j shall have the  
meaning given such term under such      
section4  4  7c7 ,clerical amendment    
,the table of sections for part ,,iii of
 subchapter ,b of chapter #a of the     
,internal ,revenue ,code of #aihf is    
amended by inserting after the item     
relating to section #aci;,i the         
following new item3  ,sec4 #aci;,j4     
,gain from the sale or exchange of      
qualified farmland property to qualified
 farmers4  4  7d7 ,effective date ,the  
amendments made by this section shall   
apply to sales or exchanges in taxable  
years beginning after the date of the   
enactment of this ,act4